The following Act of Kerala State Legislature is hereby published for general information. The Bill as passed by the Legislative Assembly received the assent of the Governor on the 27th day of March, 2023.
By Order of the Governor
V. Hari Nair
Law Secretary
EXTRACT OF THE KERALA FINANCE ACT, 2023
ACT 17 OF 2023
An Act to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2023-2024.
Preamble.- WHEREAS, it is expedient to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2023-2024;
BE it enacted in the Seventy-fourth Year of the Republic of India as follows:-
1. Short title and commencement.-
(1) This Act may be called the Kerala Finance Act, 2023.
(2) Save as otherwise provided in this Act,-
(a) section 11 shall come into force on such date as the Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this section and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision;
(b) the remaining provisions of this Act, shall come into force on the 1st day of April, 2023.
11. Amendment of Act 20 of 2017.-
In the Kerala State Goods and Services Tax Act, 2017 (20 of 2017),-
(1) in section 10,-
(a) in sub-section (2), in clause (d), words "goods or" shall be omitted;
(b) in sub-section (2A), in clause (c), words "goods or" shall be omitted;
(2) in section 16, in sub-section (2),-
(i) in the second proviso, for the words "added to his output tax liability, along with interest thereon" the words and figures "paid by him along with interest payable under section 50" shall be substituted;
(ii) in the third proviso, after the words "made by him" the words "to the supplier" shall be inserted;
(3) in section 17,-
(a) in sub-section (3), in the Explanation, for the words and figure "except those specified in paragraph 5 of the said schedule", the following shall be substituted, namely:-
"except,-
(i) the value of activities or transactions specified in paragraph 5 of the said schedule; and
(ii) the value of such activities or transactions as may be prescribed in respect of clause (a) of paragraph 8 of the said schedule";
(b) in sub-section (5), after clause (f), the following clause shall be inserted, namely:-
"(fa) goods or services or both received by a taxable person, which are used or intended to be used for activities relating to his obligations under corporate social responsibility referred to in section 135 of the Companies Act, 2013";
(4) For section 23, the following section shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2017, namely:-
"23. Persons not liable for registration.-
(1) The following persons shall not be liable to registration, namely:-
(i) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the integrated Goods and Services Tax Act, 2017;
(ii) an agriculturist, to the extent of supply of produce out of cultivation of land;
(2) Notwithstanding anything to the contrary contained in sub-section (1) of section 22 or section 24, the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, specify the category of persons who may be exempted from obtaining registration under this Act.";
(5) in section 37, after sub-section (4), the following sub-section shall be inserted, namely:-
"(5) A registered person shall not be allowed to furnish the details of outward supplies under sub-section (1) for a tax period after the expiry of a period of three years from the due date of furnishing the said details:
Provided that the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish the details of outward supplies for a tax period under sub-section (1), even after the expiry of the said period of three years from the due date of furnishing the said details.".
(6) in section 39, after sub-section (10), the following sub-section shall be inserted, namely:-
"(11) A registered person shall not be allowed to furnish a return for a tax period after the expiry of a period of three years from the due date of furnishing the said return:
Provided that the Goverment may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish the return for a tax period, even after the expiry of the said period of three years from the due date of furnishing the said return.".
(7) In section 44, the existing provision shall be numbered as sub-section (1) thereof, and after sub-section (1) so re-numbered, the following sub-section shall be inserted, namely:-
"(2) A registered person shall not be allowed to furnish an annual return under sub-section (1) for a financial year after the expiry of a period of three years from the due date of furnishing the said annual return:
Provided that the Government may, on the recommendations of the Council, by notification, and subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of regiseted persons to furnish an annual return for a financial year under sub-section (1), even after the expiry of the said period of three years from the due date of furnishing the said annual return.".
(8) in section 52, after sub- section (14) the following sub-section shall be inserted, namely:-
"(15) The operator shall not be allowed to furnish a statement under sub-section (4) after the expiry of a period of three years from the due date of furnishing the said statement:
Provided that the Goverment may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow an operator or a class of operators to furnish a statement under sub-section (4), even after the expiry of the said period of three years from the due date of furnishing the said statement.".
(9) in section 54, in sub- section (6) the words "excluding the amount of input tax credit provisionally accepted," shall be omitted.
(10) in section 56, for the words " from the date immediately after the expiry of sixty days from the date of receipt of application under the said sub-section till the date of refund of such tax", the words "for the period of delay beyond sixty days from the date of receipt of such application till the date of refund of such tax, to be computed in such manner and subject to such conditions and restrictions as may be prescribed" shall be substituted.
(11) in section 73,-
(a) in the marginal heading, for the words "wilful misstatement", the words and symbol "wilful-misstatement" shall be substituted;
(b) in sub-section (1), for the words "wilful misstatement", the words and symbol "wilful-misstatement" shall be substituted;
(12) in section 74,-
(b) in sub-section (1), for the words "wilful misstatement", the words and symbol" wilful-misstatement shall be substituted;
(13) in section 122, after sub- section (1A), the following sub-section shall be inserted, namely:-
"(1B) Any electronic commerce operator who,-
(i) allows a supply of goods or services or both through it by an unregistered person other than a person exempted from registration by a notification issued under this Act to make such supply;
(ii) allows an inter-state supply of goods or services or both through it by a person who is not eligible to make such inter-State supply;or
(iii) fails to furnish the correct details in the statement to be furnished under sub-section (4) of section 52 of any outward supply of goods effected through it by a person exempted from obtaining registration under this Act,
shall be liable to pay a penalty of ten thousand rupees, or an amount equivalent to the amount of tax involved had such supply been made by a registered person other than a person paying tax under section 10, whichever is higher.".
(14) in section 132, in sub-section (1),-
(a) clauses (g), (j) and (k) shall be omitted;
(b) in clause (l), for the words, brackets and letters "clauses (a) to (k)" the words, brackets and letters "clauses (a) to (f) and clauses (h) and (i)" shall be substituted;
(c) in clause (iii), for the words, "any other offence" the words, brackets and letter "an offence specified in clause (b)" shall be substituted;
(d) in clause (iv), the words, brackets and letters "or clause (g) or clause (j)" shall be omitted;
(15) in section 138,-
(a) in sub-section (1), in the first proviso,-
(i) for clause (a), the following clause shall be substituted, namely:-
"(a) a person who has been allowed to coumpound once in respect of any of the offences specified in clauses (a) to (f), (h), (i) and (l) of sub-section (1) of section 132";
(ii) clause (b) shall be omitted;
(iii) for clause (c), the following clause shall be substituted, namely:-
"(c) a person who has been accused of committing an offence under clause (b) of subsection (1) of section 132";
(iv) clause (e) shall be omitted;
(b) in sub-section (2), for the words, "ten thousand rupees or fifty per cent of the tax involved, whichever is higher, and the maximum amount not being less than thirty thousand rupees or one hundred and fifty per cent of the tax, whichever is higher", the words, "twenty-five per cent of the tax involved and the maximum amount not being more than one hundred per cent of the tax involved" shall be substituted.
(16) After section 158, the following section shall be inserted, namely:-
"158A. Consent based sharing of information furnished by taxable person.-
(1) Notwithstanding anything contained in sections 133, 152 and 158, the following details furnished by a registered person may, subject to the provisions of sub-section (2), and on the recommendations of the Council be shared by the common portal with such other systems as may be notified by the Government, in such manner and subject to such conditions as may be prescribed, namely:-
(a) particulars furnished in the application for registration under section 25 or in the return filed under section 39 or under section 44;
(b) the particulars uploaded on the common portal for preparation of invoice, the details of outward supplies furnished under section 37 and the particulars uploaded on the common portal for generation of documents under section 68;
(c) such other details as may be prescribed;
(2) For the purposes of sharing details under sub-section (1), the consent shall be obtained, of-
(a) the supplier, in respect of details furnished under clauses (a), (b) and (c) of subsection (1); and
(b) the recipient, in respect of details furnished under clause (b) of sub-section (1), and under clause (c) of sub-section (1) only where such details include identity information of the recipient, in such form and manner as may be prescribed;
(3) Notwithstanding anything contained in any law for the time being in force, no action shall lie against the Government or the common portal with respect to any liability arising consequent to information shared under this section and there shall be no impact on the liability to pay tax on the relevant supply or as per the relevant return.".
(17) Retrospective exemption to certain activities and transactions in Schedule III.-
(1) in Schedule III, paragraphs 7 and 8 and the Explanation 2 thereof (as inserted vide section 31 of the Kerala Goods and Services Tax (Amendment) Act, 2018 (36 of 2018)) shall be deemed to have been inserted therein with effect from the 1st day of July, 2017;
(2) No refund shall be made of all the tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times.
12. Special provision for filing of appeal.-
Notwithstanding anything contained in sub-section (1) of section 174 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) and in the Kerala Tax on Luxuries Act, 1976 (32 of 1976) ( hereinafter referred to as "the repealed Act") and the rules made threunder or in any judgment, decree or order of any court, tribunal or appellate authority,-
(a) (1) A dealer, other than those whose cases involving disputed amounts have been settled, may, after the expiration of the period mentioned under sub-section (1) of section 7 of the repealed Act, even if the appeal filed under sub-section (1) of section 7 of the repealed Act has not been admitted previously due to any reason, present a fresh appeal before the Appellate Authority on or before 30th September, 2023.
Provided that the Appellate Authority shall consider the appeal filed under this sub-section as if it is an appeal filed under sub-section (1) of section 7 of the repealed Act.
(2) Where the apellant remits a pre-deposit amount of 10 per cent of the disputed amount of tax, subject to a maximum of Rs 5 Crores further proceedings against recovery of balance amount payable under the repealed Act shall stand stayed till disposal of the appeal.
(b) (1) A dealer, other than those whose cases involving disputed amounts have been settled, may, after the expiration of the period mentioned under sub-section (1) of section 7A of the repealed Act, even if the appeal filed under sub-section (1) of section 7A of the repealed Act has not been admitted previously due to any reason, present a fresh appeal before the Appellate Tribunal on or before 30th September, 2023:
Provided that the Appellate Tribunal shall consider the appeal filed under this sub-section as if it is an appeal filed under sub-section (1) of section 7A of the repealed Act.
(2) Where the apellant remits a pre-deposit amount of 10 per cent of the disputed amount of tax under the repealed Act, subject to a maximum of Rs 5 Crores, the recovery proceedings for the balance amount payable under the repealed Act shall be deemed to be stayed till disposal of the appeal:
Provided that the pre-deposit amount, if any, already remitted under second proviso to sub-clause (2) of clause (a) shall be adjusted towards the amount to be remitted under this sub-clause:
Provided further that, the pre-deposit amount, if any, paid in excess of the amount referred to in this sub-clause shall not be refunded till the disposal of appeal.